Buying a House After Bankruptcy in St. Louis

Bankruptcy does not permanently prevent homeownership. Here are the waiting periods, loan options, and steps for St. Louis area homebuyers.

This page provides general educational information, not legal advice. Consult a qualified attorney for advice about your specific situation.

Waiting Periods by Loan Type

After Chapter 7

  • FHA loan: 2 years from discharge
  • VA loan: 2 years from discharge
  • USDA loan: 3 years from discharge
  • Conventional: 4 years from discharge
  • Non-QM lenders: As soon as 1 day after discharge (higher rates)

After Chapter 13

  • FHA loan: 1 year into plan (with court approval) or 2 years from discharge
  • VA loan: 1 year into plan or 2 years from discharge
  • USDA loan: 1 year into plan or 3 years from discharge
  • Conventional: 2 years from discharge or 4 years from dismissal

Steps to Qualify

  1. Rebuild credit immediately. Secured credit card, small purchases, pay in full monthly.
  2. Check credit reports. Verify discharged debts show $0 balance. Dispute errors.
  3. Save for a down payment. FHA requires 3.5% minimum.
  4. Maintain stable employment. Lenders want 2+ years of steady income.
  5. Avoid new debt problems. No late payments, no collections, no maxed-out cards.
  6. Get pre-approved before house hunting.

FHA Loans: The Most Common Path

  • Lower credit requirements: Minimum 580 FICO for 3.5% down, or 500-579 for 10% down
  • Shorter waiting period: 2 years after Chapter 7, 1 year into Chapter 13
  • Extenuating circumstances: Waiting period may be reduced to 1 year after Chapter 7 for job loss, illness, etc.
  • Down payment assistance: Missouri offers first-time homebuyer programs combinable with FHA loans

St. Louis Housing Considerations

  • Homestead exemption: Missouri's $15,000 exemption protects equity if financial trouble recurs
  • Foreclosure process: Missouri uses non-judicial, typically completing in about 60 days
  • First-time buyer programs: Check with the Missouri Housing Finance Agency for assistance

Frequently Asked Questions

How long after bankruptcy can I buy a house?

FHA: 2 years after Ch. 7 discharge, 1 year into Ch. 13 plan. Conventional: 4 years. Extenuating circumstances may shorten FHA to 1 year.

What credit score do I need?

FHA: minimum 580 for 3.5% down, 500-579 for 10% down. Conventional: typically 620+. Most rebuild to these within 1-2 years.

Can I buy during Chapter 13?

Yes, with court and trustee approval. FHA/VA available after 12 months of on-time plan payments.

Will I get a higher interest rate?

Initially, rates may be slightly higher. They improve as credit rebuilds and bankruptcy ages. Competitive rates typical within 3-4 years.

Does Missouri's homestead exemption protect my new home?

Yes. Missouri's $15,000 homestead exemption protects equity in your primary residence if financial trouble recurs.

Check Your Eligibility

Use our free screener to check if prior filings affect your eligibility for a new bankruptcy discharge.

Free Discharge Screener How to File Guide

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